A co-op is a form of property ownership unique to and common in New York City, where approximately 75% of residential units are co-ops. Instead of owning your apartment, you buy shares in a corporation that owns the entire building, and receive a proprietary lease for your unit. Co-op boards have significant power — they can reject buyers for any reason (except protected classes). Most co-ops require 50-100% of the purchase price in liquid assets, limit subletting, and impose strict financial requirements. Co-op prices are typically 20-30% lower than comparable condos.
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